TLDR
- Hyperliquid will unlock 9.92 million HYPE tokens, worth $314 million, on Saturday.
- The entire token allocation will be unlocked at once, raising concerns about selling pressure.
- Community members are urging the team to address concerns about market stability.
- BitMEX co-founder Arthur Hayes warns that verbal assurances cannot prevent market risks.
- Some community members are defending the team, claiming that they have earned their share of tokens.
Hyperliquid is set to unlock $314 million in tokens this Saturday. The release of 9.92 million HYPE tokens will mark a critical point for the decentralized exchange. These tokens represent 2.66% of Hyperliquid’s total supply and will be unlocked in a single “clip unlock”.
Token Unlock raises concerns about transparency
The upcoming unlock has raised questions about Hyperliquid’s transparency. The entire allocation will be unlocked at once, which may create selling pressure. Many community members are concerned about how the team will handle these newly released tokens.
A user named Andy recently published an open letter urging the team to address these issues. “The team and airdrop recipients who can finally sell will ruffle feathers until you go directly to the community,” he wrote. He pointed out that holders are already worried because of a broader market decline and HYPE’s decline in value over the past month.
BitMEX co-founder Arthur Hayes also expressed concern, warning that even verbal assurances cannot prevent potential market volatility. Hayes suggested that significant revenue growth is needed to mitigate the effects of the increased token supply. He stressed that the market is already pricing in the dilution risk, which could further affect HYPE’s price.
Hyperliquid Token Unlock sparks mixed reactions
Community response to the token unlock has been mixed. Some argue that Hyperfluid the team does not have to reveal their plans for the unlocked tokens. They believe that publication of the unlock schedule and award amount is sufficient.
Others have labeled the open letter “desperation” and defended the team’s right to their share of the tokens. Supporters of Hyperliquid argue that the team has earned their tokens. They also point out that the platform has remained one of the most volume in the decentralized perpetuals market.
Hyperliquid continues to maintain deep liquidity despite these concerns. Traders note that the exchange has consistently handled high volumes throughout the year. However, the token unlock remains a focal point for ongoing community discussions.
